New contribution rates from 1 April 2008
In order to help pay for the improved benefits and future scheme costs associated with the NHS Pension Scheme (amended 01/04/08) and the New NHS Pension Scheme, pension contributions will increase for members of both schemes (although some lower paid members will pay less than they currently pay).
New contributions are based on how much you earn, with the higher paid paying a higher proportion of their earnings. Contribution rates, which are set out in the table below will depend on pensionable pay for GPs and whole timers, or the whole time equivalent amount for part-timers.
This is a change from the current arrangement where manual staff currently pay 5% and all other staff pay 6%. Employers will continue to contribute around 14% - about two thirds of the cost of an individual’s pension.
Annual pensionable pay |
Current Contribution | Contribution rate from 1 April 08 |
| Up to £19,165 | 5% (manual workers) or 6% | 5% |
| £19,166 - £63,416 | 5% (manual workers) or 6% | 6.5% |
| £63,417 - £99,999 | 6% | 7.5% |
| £100,000 or more | 6% | 8.5% |
In 2008/09 your contribution rate will be based on pensionable pay in 2007/08. Pay thresholds (eg £19,166) will be adjusted in line with Agenda for Change pay awards. The thresholds in this table are based on 2006/07 pay rates. Interim arrangements will maintain 5% for manual workers for one year only (2008/09).